Table of Contents
The recent movement of 19,800 Bitcoins by the US government—totaling approximately $1.9 billion—into a Coinbase Prime deposit address has sparked quite the buzz in the crypto world.
Executed on December 2nd, this transaction is part of a series of Bitcoin transfers made by the government in 2023, amounting to 25,999 BTC, or roughly $2.49 billion.
Crypto analysts and industry leaders are scratching their heads, debating the government’s motives and pondering the potential consequences for the market. Discussions are swirling about strategic uses for these assets and the impact such massive volumes could have on Bitcoin’s liquidity and volatility.
Experts Warn of the US Government Selling Bitcoin
Jason Lowery, a major in the United States Space Force and author of Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin, took to X (formerly Twitter) to roast the government’s decision to move such a hefty stack of Bitcoin, calling it a colossal strategic blunder.
Lowery emphasized that Bitcoin isn’t just a tech asset—it’s a strategic one. He accused the government of mishandling these assets, hinting at a glaring misunderstanding of their significance.
He also issued a caution: selling Bitcoin today might lead to a costly scramble to buy it back in the future. To drive his point home, he compared the situation to Executive Order 6102 from 1933, which prohibited private gold hoarding.
https://twitter.com/JasonPLowery/status/1863669823265178103?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1863669823265178103%7Ctwgr%5Efea463821d4b86191a311a682565f8994f43430f%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcryptonews.com%2Fbr%2Fnoticias%2Ftransacao-de-us-19-bilhao-em-bitcoin-pelo-governo-dos-eua-intriga-o-setor-de-criptomoedas%2F
The recent movement of 19,800 Bitcoins by the United States government—worth around $1.9 billion—into a Coinbase Prime deposit address has reignited curiosity and concern in the crypto industry.
This transaction, executed on December 2nd, is part of a broader pattern of Bitcoin transfers by the government in 2023, now totaling 25,999 BTC, or approximately $2.49 billion.
Brian Armstrong Agrees: Don’t Sell the Bitcoin!
Coinbase CEO Brian Armstrong sided with Jason Lowery’s assessment, urging the U.S. government to hold onto its Bitcoin reserves instead of selling them.
Toby Cunningham, a crypto educator, chimed in with a more optimistic view, suggesting that any government sell-off would be promptly absorbed by the market, minimizing its impact on Bitcoin prices.
Bitcoin Price Takes a Temporary Dip
The sizable transaction of 19,800 BTC unfolded in two separate moves. According to analytics platform Spot On Chain, 10,000 BTC were sent to Coinbase Prime, while the remaining 9,800 BTC were directed to a newly created address.
Experts speculate that these transactions might represent custody or wallet consolidation rather than direct market sales. Gabor Gurbacs, Strategy Advisor at Tether, noted there had been no official confirmations of auctions or sales via X (formerly Twitter), leaving the purpose of these transfers shrouded in mystery.
Following the transfer, Bitcoin’s price briefly dropped by nearly 3% to $94,500 but quickly rebounded to $96,000. Spot On Chain estimates that the U.S. government currently holds around 183,850 BTC—valued at approximately $17.7 billion—distributed across multiple known addresses.
The Debate Heats Up
This latest move has reignited discussions about how the U.S. government manages its crypto assets and the broader implications for the market. As speculation continues to swirl, one thing is clear: when Uncle Sam moves Bitcoin, the crypto world pays attention.
- US Government Kicks Off a Bitcoin Rodeo Again: $1.9 Billion Transfer Leaves Crypto World Baffled! - December 4, 2024
- Bitcoin Mining Data Brightens Up in Early November – Miners Finally Catch a Break! - November 20, 2024
- Coinbase CEO and Donald Trump Discuss Staffing Decisions in the Upcoming Administration - November 20, 2024
